Local gold price likely to slip further: gold traders

TRACKING the drop in the price
of gold globally, the yellow metal
is likely to continue its slide
in the domestic market, said U
Ohn Myaing, General Secretary,
Myanmar Gold Entrepreneurs
Association.

The prevailing price of gold
in the domestic market is around
K1,066,200 per tical (0.578 ounces),
while gold is priced around
US$1,327 per ounce in the global
market.

“Pure gold was priced at
K1,070,200-1,070,300 per tical last
Monday and now, it has dropped
to K1,066,200. Global gold prices
are expected to cool slightly.
Therefore, local gold price may
pull back. In addition, the domestic
gold market remains cool,”
said U Ohn Myaing.

“At present, the demand for
gold is declining in the domestic
market as the academic year
has started, and there are no
festivals to celebrate,” he said.
“Domestic gold price is positively
related to the global gold
price. Global gold price is likely
to remain low,” he added.

“But, we need to consider
a possible price rise in the domestic
market, when the global
gold price climbs up,” said U Ohn
Myaing.

With the global gold price increasing,
the domestic gold price
hit fresh peaks in early 2019,
reaching K1,050,000 per tical in
the period from 17 to 29 January,
breaching K1,060,000 in the
period from 30 January to 7 February,
rising above K1,070,000
between 8-18 February, and
above K1,080,000 between 19-21
February.

The price of gold in the domestic
market reached a low of
K1,043,4000 on 1 January and a
high of K1,061,000 on 31 January.

It touched a low of K1,058,400
on 2 February, and a high of
K1,087,300 on 20 February. It
recorded a low of K1,048,600 on
30 March and a high of K1,069,000
on 21 March. The price of gold
registered a low of K1,037,200 on 24 April and a high of K1,054,700
on 11 April. Meanwhile, gold
reached a minimum price of
K1,035,200 on 2 May and a maximum
price of K1,059,200 on 14
May, according to gold traders.